Standard Life Shares

baby_boomer

The share allocation also depended on the value of the policies and their age.

On two policies in the same name you would get just one allocation of shares.

gt94sss2

Shares tipped in today's Sunday Telegraph:

Shares in Standard Life (300.25p) have been crucified during the summer turbulence, falling by almost 20 per cent from peaks reached in May. When the shares were changing hands at £3.50, they looked a bit expensive, with the price anticipating bumper levels of organic growth - or possibly a takeover. But that premium has been largely eroded in recent weeks, with the shares falling along with the rest of the financials sector.

There is a chance of a bid appearing for Standard Life. But the company seems more likely to be on the front foot, having been linked to potential interest in Resolution Life.

Leaving any potential bid activity to one side, the market seems to be warming to Standard's claims that it has revolutionised its business model. Analysts at Morgan Stanley last week turned from bear to bull on Standard. The bank said that over time the company should move from being a capital-intensive insurer to a capital-light service company. That's certainly the plan, although not everyone in the market is convinced it can pull it off. Interim results from the group next week should reveal more details of this process, as well as improving margins.

Morgan Stanley appears convinced, having upped its target price to 382p, suggesting upside of almost 30 per cent from the current levels.

Consolidation in the UK life assurance industry is by no means over, with the current battle over Resolution and Friends Provident likely to spark more activity.

Standard Life is likely to be involved in this process somewhere as it unfolds over the next 12 months. With the price where it stands now, the shares are worth a look. Buy.

Regards
Sunil

gt94sss2

• EEV operating profit up 71% to £353m (2006: £206m)
• New business contribution up 66% to £151m (2006: £91m)
• PVNBP margin up to 1.8% in first half of 2007, from 1.4% in full year 2006
• EEV up 5% to £5,911m (31 December 2006: £5,608m), equivalent to 271p per share
• EEV cash generation up 68% to £207m (2006: £123m)
• IFRS underlying profit 10% lower at £219m (2006: £243m), up 11% on a normalised basis
• Interim dividend of 3.8p, representing 5.6% growth

Commenting on the results, Group Chief Executive Sandy Crombie said:

'Our 2007 Interim Results show that Standard Life is growing strongly and profitably.

'We have made significant progress in increasing margin in our UK business over the first half of 2007, thanks to strong growth in higher margin products supported by the continued improvement in underlying efficiency. We are on track to meet our target of a 9-10% return on embedded value in 2007 and increasing thereafter.

'I am pleased to be able to announce the payment of our first interim dividend to our 1.5 million shareholders of 3.8p per share on 30 November 2007, representing a growth rate of 5.6%.

'Standard Life has enjoyed a successful first year as a listed company and I am confident we can achieve much more.'

More here

Also:

We will pay an interim dividend of 3.8p per share on 30 November 2007 to holders on the 12 September (ex dividend date)

Regards
Sunil

baby_boomer

Very good results - as we've come to expect . The downside is the continued redemption of existing policies, which is expected to require further provision (from profits) come the full annual results.

And Standard could also suffer if there is a serious investor confidence fall in the event of a market downturn.

But I shall continue to hold my remaining chunk of shares.

mad

Hi all

I am still hanging in there although still kicking myself not to have sold at over £3.50... but hey ho!

Here is another positive article suggesting price could go to £4 in the next year and interestingly suggesting exposure to all this sub prime stuff is minimal, although i have to say I am baffled by all of that

http://uk.biz.yahoo.com/04092007/35/standard-life-shares-reach-163-4.html

EdInvestor

baby_boomer wrote: »

Very good results - as we've come to expect . The downside is the continued redemption of existing policies..

Some questioning of the SIPP strategy here, especially encouraging people to move from existing SL PPs (in With profits) to the SIPP.

http://nma.citywire.co.uk/Blogs/Entry.aspx?VersionID=96027&re=1688&ea=156896

On the other hand the SL WP fund has a fearfully low free asset ratio (how the mighty have fallen :rolleyes: ) and probably has quite a large number of large oldish guaranteed pensions and endowments in the fund, all of which have to be reserved for.

So moving those pensions out to the SIPP would free up capital, as would endowment and WP bond surrenders.The capital is needed to invest in better performing markets overseas and more zippy products for the mature UK market especially the babyboomer group

I see a "5 for life" type guaranteed drawdown is on the way now, which will be much more profitable than more bog standard annuities, and also more useful for the customers - this could be a way to hold onto and "port the SIPP business for those less comfortable with ordinary drawdown.So another potential win-win there.

Quite a delicate balancing act then - and an admirable performance by management to produce such good profits while performing this ongoing turnaround.:)

baby_boomer

Just in case anyone was worried about Standard's drop in price on Wednesday (a day the market headed north).

Standard shares went ex-dividend on that day. So even if we sell now (I'm not going to), we have a nice cheque or standing order heading our way .

This is the first interim dividend that Standard has paid = 3.8p per share.

That's a yield of 3.2% @ 289p on Wednesday's close according to the Times.

mad

Thanks for that Baby Boomer. What date is the interim dividend payment made? Not that I am desperate (yet) I am still holding and am not going to sell at these low prices, I mean the company is still reasonably strong given the results? Having said that although SL has risen and fallen generally with the markets, since the sub prime thing happened there seems to be more of a gap?
http://uk.finance.yahoo.com/q/bc?t=3m&s=SL.L&l=on&z=m&q=l&c=&c=%5EFTSE

gt94sss2

mad wrote: »

What date is the interim dividend payment made?

Standard Life will pay its interim dividend of 3.8p per share on 30 November 2007.

Regards
Sunil

10_66

Never having had shares before, following Standard Life's shares ups and downs is new to me. Seeing that the SL shares have dropped to 2.76 (at time of writing this) is this downward trend because of the Northern Rock situation, the USA mortgage situation, a general downward trend or a mixture of all of them and is it likely to be a looooong time, or just a long time before they pick up?